Long-Term Sustainability Policy: “Driving Our Future Initiatives 2050”

• Concept Tire Completion (2029), Equip All New Tires with SMART TYRE CONCEPT Technology (2030)

• Release of Next-Generation Tires Equipped with ACTIVE TREAD Technologies in October 2024
• Launch of SENSING CORE in 2024

• Started Sales of SYNCHRO WEATHER Equipped with ACTIVE TREAD Technology
• Started Sales of SENSING CORE to Overseas Automobile Manufacturers

• Starting Sales of SENSING CORE in Japan in 2025

• Securing a Standard Certification Rate of 100%, including a Gold Certification Rate of 30% (2030)

• Promoting Further Development of Product Planning toward 2030

• Tires: Standard 59%, Gold 13%
• Sports: Standard 29%, Gold 39%
• Industrial Products: Standard 21%

• Promoting Further Development of Product Planning toward 2030

• 55% Reduction in Emissions Compared to 2017 Levels (2030), Full Carbon Neutrality (2050)

• Implemented Initiatives toward a 55% Reduction Compared to 2017 Base Year (2030) and Carbon Neutrality (2050)
• Acquisition of SBT (Science Based Targets) Certification

• Implementing Initiatives toward a 55% Reduction Compared to 2017 Base Year (2030) and Carbon Neutrality (2050)
• Acquisition of SBT (Science Based Targets) Certification
• Achieved a 34% Reduction Compared to 2019, and a 40% Reduction is Expected by 2025

• Acquired SBT (Science Based Targets) Certification

• 25% Reduction in Category 1 Emissions Compared to 2021 Levels and a 10% Reduction in Category 4 Emissions (2030)

• Implementing Initiatives toward a 25% Reduction in Category 1 and a 10% Reduction in Category 4 Compared to 2021 Levels (2030)

• Implemented Initiatives toward a 25% Reduction in Category 1 and a 10% Reduction in Category 4 Compared to 2021 Levels (2030)
• Acquired the SBT Certification in Category 1
• 23% Reduction in Category 1 and a 3% Reduction in Category 4 Compared to 2021 Levels

• Implementing Initiatives toward a 25% Reduction in Category 1 and a 10% Reduction in Category 4 Compared to 2021 Levels (2030)

• Introducing Hydrogen Production Equipment for Use in Hydrogen Boilers (2025)

• Addressing Issues with Continuous Operation of Hydrogen Boilers

• Completed Demonstration Testing of Hydrogen Boilers in March and Will Continue to Operate Them as Power Equipment

• Starting to Produce Hydrogen through Water Electrolysis
• Continuing Stable Operation of Hydrogen Boilers

Sustainable Raw Material Content Targets by Product Line

• Tires: 40% (2030), 100% (2050)
• Sports: 20% of Practice Golf Balls (2030), 100% of All Golf Balls (2050)、Launch of Tennis Balls with 100% Sustainable Raw Materials (2030), 100% of All Tennis Balls (2050)
• Industrial Products (by Weight): 40% (2030), 100% (2050)

• Continuing to Develop Formulations Using Sustainable Raw Materials to Achieve the 2030 Target
• Continuing Discussions to Raise the Recycling Rate
• Continuing Discussions to Identify Candidates for Alternative Raw Materials
• Discussing Facility Upgrades while Planning Measures to Introduce Novel Types of Raw Materials
• Increasing the Ratio of Sustainable Raw Materials toward the 2030 Target

• Promoted Initiatives to Improve Recycling Rates
• Continued Discussions to Identify Candidates for Alternative Raw Materials
• Formulated Plans for Facility Upgrades to Introduce Novel Types of Raw Materials
• Started Initiatives for Resource Circulation of Carbon Black for Tires (Collaboration)
• Evaluated Processes to Increase the Ratio of Sustainable Raw Materials in Golf Balls

• Continuing to Develop Formulations Using Sustainable Raw Materials
• Continuing Initiatives to Improve Recycling Rates
• Continuing Discussions to Identify Candidates for Alternative Raw Materials
• Formulating and Implementing Plans for Facility Upgrades to Introduce Novel Types of Raw Materials

• 40% Reduction in Plastic Used in Tire Labels, Packing Materials, Sales Promotion Tools, etc., Compared with 2019 Levels (2030)

• Enhancing Initiatives to Reduce Plastic Used in Tire Labels
• Continuing Initiatives to Eliminate Plastic Used in Tire Packaging Materials
• Changing the Lids and Labels on Tennis Ball Packages to Paper and the Plastics Used in Those Packages to Recycled Plastics Overseas

• Achieved a 34% Reduction Compared to 2019, and a 40% Reduction is Expected by 2025

• Setting new targets for resource circulation

• 100% Recycled Water Usage at Bases of Operations in Areas with High Water Security Risk (2050)

• Creating a Scenario for Achieving 100% Water Recycling at Bases with High Water Risk

• Created Scenarios for Achieving 100% Water Recycling

• Following Up on the Progress of Scenarios for Achieving 100% Water Recycling

• Raw Material Procurement in Line with the SNR Policy
• Applied to Major Suppliers (2030), Applied to All Suppliers (2050)

• Specifying Goals and Target Values for GPSNR KPIs, and Reflecting Them in the Mid-Term Plan
• Strengthening Our Cooperative Relationships with Suppliers and Other Related Parties to Ensure That We Understand EU Requirements and Comply with EUDR

• GPSNR: Participated in Discussions on Industry KPIs and Developed Response Plans for Four Key Items
• EUDR: Conducted On-Site Audits to Strengthen Cooperation with NR Suppliers

• GPSNR: Addressing the Four Key Areas (Supply Chain Mapping, Due Diligence, Risk Assessment, and Shared Investment) in the Plan
• EUDR: Continuing Audits and Dialogue to Strengthen Relationships with Suppliers

• Zero Serious Accidents

• Continuing Communication Enhancement Activities
• Continuing to Pursue Improvement in Safety Indicators (KPIs)

• Conducted Dialogue between Management and Workers at the Production Floor
• Continuing to Pursue Improvement in Safety Indicators (KPIs)

• A Personal KPI of 6.0 Points or Higher

• Strengthening the Occupational Health System & Cultivating Culture of Health

• Strengthening Industrial Health Framework by Enhancing Skills of Health Specialists and Increasing Personnel
• Cultivating a Culture of Health (Enhancing the Recognition of the Revised Version of Health & Productivity Management Declaration, Which Was Announced in 2022, among Employees)

• Implemented Base of Operations-Wide Activities, Such as Knowledge Sharing at Health Meetings and Smoking Cessation Promotion Committees
• Percentage of Persons with Recognition of the Health & Productivity Management Declaration: 53.9% (Health Awareness Survey Results)

• Strengthening Industrial Health Framework by Enhancing Skills of Health Specialists and Increasing Personnel
• Cultivating a Culture of Health (Enhancing the Recognition of the Revised Version of Health & Productivity Management Declaration, Which Was Announced in 2022, among Employees)

• Global Introduction of 360° Feedback (2030), Ongoing Executive Coaching (2030), 80% Positive Responses on Organizational Culture Survey (2030)

• Implementing 360° Feedback and Leadership Seminars
• Utilizing the Talent Management of 360° Feedback
• Promoting the Organizational Culture Change Project, Including Addressing Issues Identified through Initiatives in 2023

• Expanded 360° Feedback to Overseas Bases and Implemented Leadership Seminars
• Promoted the Organizational Culture Change Project and Implemented Related Seminars
• Positive Responses on Organizational Health Survey: Achieved 70.5% (Up 0.6% Year on Year)

• Continuing 360° Feedback and Leadership Seminars
• Transition to Engagement Survey
• Conducting Organizational Culture Change Seminars at Factories

• Expansion of Unconscious Bias Training to All Levels (2030) (Non-Consolidated Basis)

• Implementing Grade-Specific Unconscious Bias Training for Factory Employees
• Response for Awareness of Unconscious Bias in Company-wide Questionnaire Company-wide: 80%, Technicians: 60%
• Continuing to Distribute Ally Stickers, Continuing and Expanding Community Activities

• Conducted Unconscious Bias Training for Candidates for Production Floor Supervisors at Factories
• Conducted Surveys of Technicians on the Production Floor at Factories
• Continued to Distribute Ally Stickers and Expanded Community Participation

• Implementing Grade-Specific Unconscious Bias Training for Factory Employees
• Continuing to Distribute Ally Stickers, Continuing and Expanding Community Activities
• Maintain 100% rate of male employees taking parental leave

• Ongoing Career Development Program for Women
• Ratio of Female Managers: 7% (2025), 12% (2030) (Non-Consolidated Basis)

• Expansion of the Mentoring System to Young Employees.
• Development of a Training System to Increase the Ratio of Female Managers
• Strengthening Top Commitment

• Expansion of the Mentoring System to Young Employees.
• Development of a Training System to Increase the Ratio of Female Managers
• Reviewed D&I Promotion Structure

• Ratio of Female Managers: 7% (Non-Consolidated, 2025)

• Procurement of 95% of Tire Raw Materials by Purchase Value from Suppliers Who Score at Least 45 Points on the Standard Evaluation by 2030
  * Planning the Phased Rollout of This Procurement Approach to Businesses Other Than the Tire Business.

• We Achieved Our 2030 Target by Procuring 97% of Purchases by Value from Suppliers Who Scored 45 Points or Higher

• Maintain the 2030 targets achieved in 2024

• Creation of Human Rights Management System and Due Diligence Process (2024), Establishment and Implementation of Human Rights Due Diligence (2025)

• Identifying and Clarifying Human Rights Issues within the Group, and Developing a Human Rights Due Diligence Roadmap

• Assessed Human Rights Risks and Identified Critical Human Rights Issues
• Assessed Initiatives to Address Critical Human Rights Issues at the Manufacturing Bases within the Group
• Assessed the Effectiveness of Complaint Handling Mechanisms at All Bases within the Group

• Promoting Human Rights Due Diligence within the Group (Establishment of Systems, Educational Activities, and Holding of Subcommittee Meetings)
• Disclosure of Information to External Parties (Publishing Human Rights Report)
• Conducting Human Rights Due Diligence for Migrant Workers at Our Thai Base
• Formulating Strategies for Promoting Human Rights Due Diligence in the Value Chain

• Establishment of a Framework for Improving the Effectiveness of the Board of Directors with an Eye Toward External Changes & Our Shifting Business Situation

• Discussing the Structure of the Board and Committees That Will Enhance Our Corporate Value and Improving Its Diversity, Considering Societal Circumstances and the Results of Discussions with Stakeholders, Including Institutional Investors

• Held Meetings with 12 Domestic and Overseas Institutional Investors
• Expanded the Scope of Disclosure to Enhance Corporate Value

• Conducting Dialogue with Stakeholders, Including Institutional Investors, as Appropriate
• Establishing a Governance Structure Based on Discussions with Outside Officers

• Analyzing the Results of Third-Party Assessments to Enact Measures to Enhance Effectiveness

• Continuing to Conduct the Board of Directors’ Effectiveness Survey
• Using Questionnaires from External Organizations to Improve the Content of Our Surveys and Improving the Governance Level of the Board of Directors by Increasing the Time Allocated to Discussions on Important Topics, etc.

• Conducted Interviews and Questionnaires by External Organizations
• Identified Issues Such as the Time Allocated for Discussions and Follow-Up on Matters Submitted for Discussion

• Continuing to Conduct the Board of Directors’ Effectiveness Survey
• Implementing Measures to Address Issues to Improve the Governance Level

• Formulation of Tax Policy
• Enactment of Global Tax Strategy (2025)

• Continuing to Collect Information Regarding Taxation Systems in Each Country
• Continuing to Review a Profit Margin Target in Consideration of External Conditions and the Overall Profit and Loss Situation of Our Group.
• Developing Global Tax Strategies in Light of Trends in International Tax Rules

• BEPS2.Decided on Control and Management Policies for Global Tax Compliance Based on BEPS 2.0 and Implemented Them at Overseas Subsidiaries

• Promoting Global Tax Compliance Based on International Tax Rules and Implementing Appropriate Profit Margin Management

• 80% Supportive Response on “Our Philosophy” Entrenchment Survey (2030)

• Promoting Various Initiatives to Embody “Our Philosophy”
• Continuing Activities to Facilitate the Entrenchment among Factory Technicians

• Held a Boost Seminar on “Our Philosophy and Human Rights”
• Held Seminars to Penetrate and Develop a Sense of Ownership of “Our Philosophy” at the Grade-Specific Training
• Rolled Out Penetration Seminar Videos for Factories

• Holding Boost Seminars to Develop a Sense of Ownership of “Our Philosophy”
• Holding Seminars to Penetrate and Develop a Sense of Ownership of “Our Philosophy” at the Grade-Specific Training